Seriously, what are the best ways to get out of debt??

[Jenn218]

Originally Posted by Sunnyd

in a gallon of water. That way you can get to it if you need it but not really easily. You have to wait for the ice to melt to get the card and that gives you time to talk yourself out of the purchase. Another easy way to stop using your cards is to not carry them in your purse. Again you have to go home to get your card and back to the store which gives you time to decide it's not worth it.

I too am in the process of paying off my credit cards. There are two recommended methods, you can start by paying off either the lowest balance card or the highest interest card. You pay the most you can on one card and only the minimums on the others. Then when you pay the first one off you role that payment into the next card and so on. It works great but seems to take a long time.

I just seen this on a show I watched on PBS....I can't remember what show it was, but they froze the card in water.

[Jenn218]

Originally Posted by scrappysmom

i cut my cards up and am now paying on my cards no more credit cards for me .and i find myself staying home more to keep me from being tempted to spend money it does work .i just paid off capitol one and now working on wal-mart.

WAY TO GO!!!
I hope to be right there with you soon!!!
Okay in a year or two or so.....

[Jenn218]

Originally Posted by mizzwanned

I guess, i mean this was and is my first credit card. I wasn't paying and they were the ones that called me and i basically told them im a college student, im working right now and and going to school full time so i haven't been able to pay much and they told me we can make put you on a program where you pay a set amount every month but we basically freeze your CC and you can't use it while you're on this program. So they told me to choose an amount i can pay def. every month and i told them $100 and they said whenever i can try to pay more than that so i can eliminate my debt faster. So it's been a couple of months and they don't charge me anything , i think it expires in February and then that's when they have to start charging me interest again but by then i will have it all paid off!! So i have not used my CC in almost a yr and the debt has just been coming off!

Whoa! That is great! I didn't know that a CC company would do something like that! That is great that they are helping you that way!
You will get there in no time! By Feb. I bet you have it gone!

[Jenn218]

Originally Posted by chattiesmom

go to http://www.clarkhoward.com

he gives good financial advice

Thanks Cindy
I have never heard of him.....I will definitely check into it!

[WesleyandMaddie]

I know exactly how you feel. I have about $10,000 in credit card debt right now. I transferred some of my debt to cards with 0% interest and it is definately helping. Before I did this I felt like I was getting nowhere because so much of my monthly payments were just going to finance charges and not the real debt!

I'll be checking back with this thread to see what advice everyone has!

[adorame]

Did you check your library? They have lots of books on how to get out of debt.My husband used them and we were able to get out of debt 1 year prior to getting our house. I can't think of the names of them but we used them and it helped allot! We did not go to councling the books all said not to! We ended up disputing some things and they were taken off our credit reports! We have no nagitive credit against us now and it's nice not owing every one something!

[Tink's Mom]

I certainly understand debt. I have some of my own that I wish would evaporate. .

But I don't think it's a good idea to borrow from your 401K unless you've exhausted all other opportunities. There isn't a penalty as such, but there are certainly drawbacks to borrowing. And some plans only allow borrowing under certain circumstances. Check out this site to understand the pros and cons of borrowing on your husband's 401k.

http://www.401khelpcenter.com/loans.html

[chattiesmom]

Originally Posted by Jenn218

Thanks Cindy
I have never heard of him.....I will definitely check into it!

You have never heard of Clark Howard? He has a daily talk radio show and is a finance guru. You can call in or log into his sight and schedule one of his financial wizzards to call you.

good luck, my friend.... if you found a miracle answer, please share

[Superstarkba]

Originally Posted by chattiesmom

You have never heard of Clark Howard? He has a daily talk radio show and is a finance guru. You can call in or log into his sight and schedule one of his financial wizzards to call you.

good luck, my friend.... if you found a miracle answer, please share

Isn't he just for Georgia, or is he nation wide? Hes on the Channel 2 news all the time, but since she not in Georgia she can't get that.

[KELLYLYNN]

Originally Posted by Bizzymammabee

A good way to pay down debt and save yourself money would be to borrow from your 401k if you are not too close to retirement. It's a good way to get the funds, pay it back at a lower interest rate and the biggest plus is that the interest goes to you and not a credit card company. I used from mine to do put in my new kitchen and install hardwood floors throught out my house. There are no penalties for taking a loan from your 401k.

I love the fact that I am in debt to myself only and every single penny of interest goes into my account.

I wouldn't do the debt consolidation because I dont' like paying a fee to anyone. My mom did it once with this very well known company that does that sort of stuff and they were messing up her credit on their own by making the payments late. You can also call your current credit cards and as long as your not late or delinquent and a good payer you can ask about getting a lower rate on your cards. That is what I just did on the ones that I had that were empty.

Life after credit cards takes getting used to. You can also do a big chunk payment by budgeting things out of your income tax returns.

Good luck...I know how it is to feel caught up in the cycle of credit card debts.

yea but you have to remember with a 401k you get nailed with taxes at the end of the year too... i just did......

[celstu1]

The BEST way to get out of debt is to STOP SPENDING! HAHA

I am a shop-aholic... like I break out in sweats when I go near a mall or clothing or shoe store. Everything I buy is for me usually (I am single with no SO) or my dogs. Its all stuff I DO NOT need and its all grossly overpriced (Im a name brand junkie too ) sooooo I paid off all my debt in Jan ($6,000) and now again I am back up to $6,000!! I am in this sad cycle of putting money in the bank and charging everything, then at the end of the year, I take the $6,000 I have in the bank and pay OFF the credit card... but by the following year, I am doing the same thing over again! UUGGHHH Got a cure for that?

Getting out of debt is sooooo difficult!

[KELLYLYNN]

Originally Posted by celstu1

The BEST way to get out of debt is to STOP SPENDING! HAHA

I am a shop-aholic... like I break out in sweats when I go near a mall or clothing or shoe store. Everything I buy is for me usually (I am single with no SO) or my dogs. Its all stuff I DO NOT need and its all grossly overpriced (Im a name brand junkie too ) sooooo I paid off all my debt in Jan ($6,000) and now again I am back up to $6,000!! I am in this sad cycle of putting money in the bank and charging everything, then at the end of the year, I take the $6,000 I have in the bank and pay OFF the credit card... but by the following year, I am doing the same thing over again! UUGGHHH Got a cure for that?

Getting out of debt is sooooo difficult!

YEP - get married and have kids, that will cure that real fast

[Bizzymammabee]

Originally Posted by Jenn218

So.....you are not penalized for borrowing from your 401k? For some reason, I thought you were.....I haven't looked into it. What is the criteria for paying it back...how long do you have, interest, etc. I would love to hear about it.

There is no penalty and you can take up to five years to pay it back an it's broken into nice even payments. The payment has to be deducted bi-weekly. With my job I can only take up to 50% out. If I have to or choose to take more I can but I will get suspended from the plan for 6 months.

You also have the option to take money from the plan and pay the taxes immediately or later at tax time. The thing with this one is there is no payments and you just literally took out a chunk of money.

[Erin]

Originally Posted by Bizzymammabee

There is no penalty and you can take up to five years to pay it back an it's broken into nice even payments. The payment has to be deducted bi-weekly. With my job I can only take up to 50% out. If I have to or choose to take more I can but I will get suspended from the plan for 6 months.

You also have the option to take money from the plan and pay the taxes immediately or later at tax time. The thing with this one is there is no payments and you just literally took out a chunk of money.

Isn't it easier to just stop paying into the 401K? I would love to save money, but it makes no sense to save until we are out of debt. Once we have paid off everything but the mortgage, THEN I will start saving for retirement, vacations, a bigger house, etc.

[Bizzymammabee]

Originally Posted by KELLYLYNN

yea but you have to remember with a 401k you get nailed with taxes at the end of the year too... i just did......

You get nailed if you take a hard amount out. You can also opt to pay that tax at the time you take the money so it's taken immediately.

I have taken money as a loan and repaid. Never the hard disbursement.